Hotel hermit got $17M

How to make money in real estate by being a tenant :eek:

Hotel hermit got $17M to make way for 15 Central Park West

In 2004, developers Will and Arthur Zeckendorf bought the famed Mayflower Hotel and several adjacent lots on the Upper West Side for just over $400 million, with the goal of creating the city?s most exclusive residential building ? 15 Central Park West. Only one thing stood in their way: A 73-year-old recluse named Herb Sukenik, who refused to move from the hotel.

In this excerpt from his new book, ?House of Outrageous Fortune? (Altria Books), author Michael Gross reveals the most expensive eviction in New York City history.

The Zeckendorfs decided to play hardball. They separated the two halves of the building lobby and began demolishing the southern end.

Sukenik?s response? ?Oh, I love to watch construction.?

Jackhammers began pounding away for hours a day.

?I love the noise,? he said.

The Zeckendorfs served Sukenik with papers setting in motion the multiyear demolition-related eviction process they?d hoped to avoid.

?Finally, it had all come down to a simple question: Where?s the cash?? Will recalls. ?This is just a break-the-phone moment. We?ve got a 52,000-square-foot property with one tenant.?

The Zeckendorfs turned to a third lawyer who knew Rozenholc. ?And finally, we get a number, which is enough to break another phone.?
But at last they had a deal.

Fortunately, during Sukenik?s extended silence, they?d bought the Essex House condo, which set them back $2 million. They won?t reveal the additional sum they finally paid Sukenik; Will says only that it was ?by far the highest price ever paid to [relocate] a single tenant in the city of New York.?

It was $17 million, according to someone with knowledge of the transaction.
In return, Sukenik promised to pay the Zeckendorfs $1 a month in rent.

?As a joke,? Rozenholc, who got a third of the settlement, says he gave them a check for $120 for the first 10 years and added a clause to the final agreement requiring them to return a prorated amount if Sukenik died in that time.
 
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